East Texas Rural Access Program – Revolving Loan Fund

East Texas Rural Access Program – Revolving Loan Fund

Healthcare Access Project Examples

(Note: These examples are for illustration purposes only, and do not represent actual completed projects)

Creating a New Non-profit Rural Health Clinic: One example might be a community project to open a non-profit Rural Health Clinic. Equipment, remodeling, and interim working capital could make up an estimated $200,000 project. Through grants, local economic development funds, or fund raising, the community might raise $50,000; a local bank may agree to a $100,000 loan; and the RLF could provide the remaining $50,000 on terms that support the bank’s requirements for a successful business plan.

A Hospital Example: Another example may be either a for-profit or not-for-profit hospital that has strong cash flow but limited cash on-hand to fund a needed new service or equipment. Maybe you know of a grant that could be available if matching funds could be put up by the hospital. Or, a bank may loan the funds if the hospital can produce 25% of the funds in equity or a down payment. The RLF could provide the matching funds portion for the grant, or could provide the hospital’s 25% down payment, or a partial guarantee to the bank, to make it a viable project.

Short Term Operating Capital Need: Another example could be a short term operating capital issue, such as a rural hospital that has applied for Critical Access status, and the approval cycle is a several month process. An operating capital loan from the RLF, combined with existing hospital funds, or other loans and grants, may be a way to tie the operating plan together for a six-twelve month period.

A Project With Economic Development Support: Another example, given the economic impact derived from healthcare related spending, could be a project to “keep the dollars at home”. If certain healthcare services are not available in a given area, perhaps a joint public/private project to create local access may be possible. The ETRAP Fund can be combined with local public/private dollars and assets, such as bank loans, grants, economic development funds, and donated land or funds. The economic development multiplier effect is just as strong in healthcare as it is in any other sector. It is also a key factor in creating the necessary quality of life environment for economic and job attraction.

A Telemedicine Project: A rural area may have a clinic with Nurse Practitioner or Physician Assistant coverage, but lacks the ability to have full time MD or specialty service. The ability to transmit and receive voice, data and picture information on a patient, in real time, could help determine treatment or transport needs rapidly. Broadband telecommunications service and a relationship with a larger facility could be a major step for a community in this situation. A partnership between a major grantor, a local or regional telecommunications company, local bank loans or private funds, and an ETRAP Healthcare Access Loan, could make this type of new technology system available to a community, either through a public, private, or non-profit venture.

A Community Project to Provide a Facility to Help Recruit Physicians: Having suitable facilities available to recruit physicians to communities is an important attraction. Perhaps a community hasn’t had a full-time physician, or the present physician is retiring soon. Maybe there is even a present clinic or office available to offer the next physician, but it’s out of date in both equipment and in attractiveness. Perhaps the local bank is hesitant to loan the full amount needed for renovation and new equipment, but would be willing to work with another funding partner. The ETRAP Loan process can work with the bank, local community leaders, and even the present medical personnel, to structure a partnership to accomplish the goals of the community. The ETRAP loan can be either direct to the project or as partial guarantee to the bank.